Lisbon council has discovered the inherent difficulties in applying and collecting its much criticised ‘tourist tax.’
The council today admitted that it was imposing its per night fee at hotels and registered Alojamento Local facilities as from January 1st, 2016 but that the collection of a fee from those arriving in the capital by cruise ship or air, is delayed.
The amount that hoteliers and guest house owners will have to charge their guests and forward to the council is set an €1 per night, regardless of the type of accommodation, so those staying in a five star hotel will pay the same as tourists in budget accommodation.
The fee is capped at €7 per person per stay with a zero rate for those under 13-years-old and guests staying for 'medical services.'
"The tax on arrivals will not enter into force on 1 January," said Lisbon’s councillor in charge of finance, João Paulo Saraiva who would not commit to a date, "We will make an announcement in the first months of the year."
The local law under Fee Regulations, Prices and Other Income of the Municipality of Lisbon, enables the council to charge €1 for each passenger landing at Lisbon International Airport and at the cruise ship terminal, but this is the part that is delayed.
In 2015, airport operator ANA paid the council an equivalent fee per passenger arriving at Lisbon airport, an arrangement that ANA is not continuing to support through 2016.
Saraiva acknowledged that a solution has yet been found to charge arrivals by air and sea.
To justify the delay in charging the tax at Lisbon’s airport and docks, Saraiva said that to get this scheme up and running "is much more difficult" than collecting the overnight €1 rate, but noted that many European cities charge a tourist tax and it is easy to look at the charging models already in place.
Plans for a tourist tax in the Algarve are supported by some mayors but not supported at all by local hotels and tourism businesses reliant on low-cost tourism, the region's mainstay.
According to Lisbon council, 15 European countries charge a tourist tax on accommodation, including Spain, Italy and France ranging from €0.65 in Barcelona and €4.40 in Paris depending on the type of accommodation.
As for the money, the council approved, in a private meeting, the operating standards of the Tourist Development Fund of Lisbon.
This new fund is solely to finance priority investments and actions for the ‘sustainability’ of Lisbon as a tourist destination. No explanation of ‘sustainable’ was offered.
The approved proposal of course will require a committee, so an "Investment Committee" has been set up to include the mayor and representatives from the Lisbon Tourism Association and the Association of Portugal Hotels.
The 2016 budget expects the tourist tax to raise €15.7 million, money that those against the tax say would be spent in the capital’s restaurants and bars.
When the tax later is applied to air and sea passengers, those staying in hotels and guest houses will pay both for landing and sleeping in Lisbon.
